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Elizabeth Baier
St. Paul, Minn.

Park Nicollet to lay off 233 workers

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Park Nicollet Health Services announced it will lay off 233 employees due to the worsening economy. The layoffs represent 1.8 oercent of the health care provider's staff.

Officials at the St. Louis Park-based hospital system also said an additional 69 currently open positions will not be filled.

The affected employees will receive severance packages, employee assistance services and job search assistance. Their last day of work will be April 24.

In a statement, Park Nicollet President and CEO David Wessner blamed the national economic downturn for hurting the company's investments and reducing demand for services.

"Park Nicollet, like many organizations, has been negatively impacted by the national economic downturn which affected investment holdings, along with lower demand for our services," Wessner said. "We also are seeing the amount of uncompensated care we provide increase due to higher unemployment and a greater prevalence of high deductible health insurance. And, we still don't know the full extent of state and federal budget cuts to health care. We are taking steps now to address our current realities and be better positioned for the future."

In December, the hospital system cut an additional 233 jobs. And in March, it eliminated 26 Licensed Practical Nurses at Park Nicollet Methodist Hospital.

In addition to today's layoff announcement, Park Nicollet also:

- Eliminated and consolidated several leadership positions;

- Required a mandatory two week furlough for exempt, non-revenue producing employees to be taken before December 31, 2009;

- And eliminated the company's 401K / 403B matches for 2009.